Program Overview
What is a conventional loan?
A conventional loan is a mortgage that is not insured by the FHA, VA, or USDA. Many conventional loans follow agency guidelines, while others are offered under lender-specific programs.
Conventional financing may be used for primary residences, second homes, and eligible investment properties. Qualification depends on credit, income, debts, assets, reserves, property type, occupancy, and loan structure.
Who This Program May Help
Who may benefit from conventional financing?
Homebuyers With Strong Profiles
Borrowers with stable income, acceptable credit, and sufficient assets may benefit from competitive terms.
Second-Home Buyers
Eligible borrowers may finance a vacation or second residence under applicable occupancy rules.
Real Estate Investors
Conventional programs may finance eligible one-to-four-unit investment properties.
Homeowners Refinancing
Rate-and-term and cash-out refinance options may be available based on equity and qualification.
Qualification Factors
Common eligibility considerations
Actual requirements vary by loan purpose, occupancy, property type, loan amount, automated underwriting findings, lender overlays, and current agency guidelines.
Preparing to Apply
Documents commonly requested
- Government-issued identification
- Recent pay statements or approved income documentation
- W-2 forms and tax returns when required
- Recent bank and asset statements
- Employment and housing history
- Current debt information
- Purchase contract and property information
- Additional documentation requested by underwriting
Step by Step
How the process works
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01
Complete the Secure Application
Provide your contact information, financing goals, property details, and estimated financial profile.
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02
Submit Supporting Documents
Provide the income, asset, credit, identity, entity, and property documents required for the selected program.
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03
Review Program Eligibility
Your mortgage professional reviews loan structure, occupancy, property type, credit, income, reserves, and documentation.
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04
Processing and Underwriting
The file, appraisal, title, insurance, disclosures, conditions, and applicable program requirements are reviewed.
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05
Final Approval and Closing
After final conditions are satisfied, closing documents are prepared for signing and funding.
Frequently Asked Questions
Conventional Loans FAQs
What is the minimum down payment for a conventional loan?
Some eligible borrowers may qualify with a low down payment, but requirements vary by occupancy, property type, loan program, credit, income, and underwriting.
When is PMI required?
Private mortgage insurance may be required when the loan-to-value ratio exceeds program thresholds. Cost and cancellation rules vary by loan structure and guidelines.
Can a conventional loan finance an investment property?
Yes, eligible one-to-four-unit investment properties may qualify subject to higher down-payment, reserve, credit, and documentation requirements.
Can gift funds be used?
Gift funds may be permitted for eligible transactions when donor, transfer, documentation, and borrower-contribution requirements are satisfied.
Can self-employed borrowers qualify?
Yes, when tax returns, business history, financial statements, bank records, and other documentation support qualifying income.